According to the latest data released by the China Coal Industry Association, China produced 185.8 million tons of coal in January this year, marking a 3.1% increase compared to the same period last year. In 2007, the nation's total raw coal output reached 2.523 billion tons. Over the past five years, the coal industry has made significant progress, with notable improvements in safety, efficiency, and sustainability.
Looking ahead, industry experts believe that China’s coal sector is transitioning into a phase of “quality transformation.†The focus will shift toward developing a sustainable coal industry characterized by high resource efficiency, improved safety, better economic returns, and reduced environmental impact. This transition will involve six key areas of development.
In 2007, the country’s raw coal output stood at 2.523 billion tons. Over the past five years, several major changes have been observed in the industry:
First, coal mine safety has seen steady improvement. Efforts in gas control and mine rectification have led to a significant reduction in coal-related fatalities. The number of deaths from coal mine accidents dropped from 6,597 in 2002 to 3,786 in 2007—a decrease of 45.9%. The death rate per million tons also fell from 4.94 to 1.485, a drop of 69.94%.
Second, the economic performance of the industry has improved. Since 2003, the coal sector has turned a profit, and in 2007, large-scale coal enterprises achieved a total profit of 95 billion yuan after subsidies, including 25.2 billion yuan from former central coal companies. Additionally, 28 companies went public, raising over 15.21 billion yuan through direct financing.
Third, the industrial structure has become more optimized. By the end of 2007, there were 706 large coal enterprises, with 34 producing over 10 million tons annually. These enterprises accounted for 45% of total output. Some state-owned enterprises had non-coal revenue exceeding 50%, and the output ratio of large, medium, and small mines adjusted to 50:12:38.
Fourth, technological advancements have accelerated. Mechanized mining and information systems are now widely used. There are 14 large modern mines with annual production over 10 million tons, and 219 safe, high-efficiency mines producing 705 million tons, with 98% mechanization.
Fifth, coal production has surged. From 1,415 million tons in 2002, output rose to 2,523 million tons in 2007—an increase of 78.3%, or an average annual growth of 12.26%. Coal still accounts for 76% of primary energy production and 69% of consumption in China.
Despite these achievements, the industry faces challenges. The traditional development model remains unchanged, safety infrastructure is still weak, and the pressure on resources and the environment is growing. Energy-saving and emission-reduction targets remain difficult to meet, and transportation bottlenecks continue to hinder production.
To address these issues, the coal industry will focus on six key areas:
First, it will promote the development of large coal bases and enterprises, aiming to build 13 major coal bases by 2010, which will account for 86% of national output. It will also encourage cross-industry and cross-regional cooperation to build a modern enterprise system and enhance competitiveness.
Second, technology will drive productivity improvements. Investment in R&D for advanced mining equipment, transportation, and washing facilities will be increased, with a focus on full-mechanized mining and safer, more efficient operations.
Third, the economic development model will shift from quantity-driven to quality-focused. This includes improving cost control, management efficiency, and labor organization to enhance overall performance.
Fourth, structural optimization will continue. Small and medium-sized mines will be upgraded or closed, reducing their number to 10,000 by 2010 and lowering their output to under 700 million tons. The output ratio of large, medium, and small mines will adjust to 56:17:27.
Fifth, safety will remain a top priority. Companies will strengthen safety responsibility, invest in hazard prevention, improve miner training, and promote safe technologies to ensure a stable and secure working environment.
Lastly, the well-being of miners will be prioritized. Infrastructure improvements, better working conditions, and enhanced safety measures will be implemented to protect workers’ health and rights.
Overall, the coal industry is undergoing a transformative phase, aiming to balance growth with sustainability, safety, and social responsibility.
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